- Pound stabilizes against the EUR during the first session of the week
- Pick-up in risk appetite keeps EUR firm
- Short-term tumble in natural gas price dampens recession fears
- No major risk events for today in the economic calendar
The Pound Euro (GBP/EUR) exchange rate remains indecisive after Monday’s pick-up in risk appetite. The pair declined -0.05% in the previous session settling on Monday at €1.1850, after trading in a range between €1.1890 – €1.1841.
At 06:00 UTC, GBP/EUR trades +0.03% at €1.1854.
Recession risks to Europe’s single currency have faded with natural gas prices tumbling on the first trading day of the week. The September Nymex contract fell -by 5.89% to settle at $7.589/MMBtu on Monday trading.
Natural gas prices and energy supply risks remain a headwind for the EUR, but in the short-term, Europe’s single currency benefited from the relief sell-off in the energy sector.
Elsewhere, the share price performance of the top 100 UK companies added on gains from the previous week. UK’s FTSE 100 settled up +0.47% at 7482.7 but not before reaching the highest level since June 9.
UK’s Prime minister race enters into its final leg with the contest between foreign minister Liz Truss and former finance minister Rishi Sunak likely to shape the FX exchange rate.
Looking forward, the economic calendar in the UK and Eurozone is relatively light today and investors are on the sideline ahead of Wednesday’s inflation figures.